It was not exactly clear why both WTI and Brent suddenly took off, with West Texas surging by $1.60 at last check, up 3.6% rising to just shy of $48, while Brent was over $51, both at the highest level since September 3.
It certainly wasn't due to the latest downgrade in global growth by the IMF (unless it was on hopes a global recession means even more easing is imminent).
However, according to several trading desks, the pre-war jitters in (and above [7]) Syria are finally catching up to some, and there has been a distinct geopolitical-risk oil bid in the past two hours, on concerns the proxy war involving the US, Russia and, increasingly, Saudi Arabia and Iran, will finally spill over leading to forced supply cuts by middle-east nations, and a sharp, if transitory, spike in crude oil prices, such as the one the market is pricing in right now as per the chart below..
[8]
